Coco Group Makes Strategic $46M Investment in West Palm Beach's Historic Echo Building
Canadian Family Office Enters Florida's Premium Commercial Market
In a significant move that underscores the growing appeal of South Florida's commercial real estate sector, Toronto-based family office Coco Group has made its debut in downtown West Palm Beach with a substantial $45.7 million acquisition. The purchase of the historic Echo building at 205 Datura Street marks Coco Group's strategic entry into one of Florida's most rapidly appreciating commercial districts.
The transaction, finalized through an entity managed by Coco Group's CFO Wesley Diong, values the 71,694-square-foot mixed-use property at approximately $637 per square foot. This premium pricing reflects both the building's prime location and its recent comprehensive renovations, positioning it as a trophy asset in the family office's expanding portfolio.
Jenny Coco, CEO of the Canadian investment firm, is steering the company toward premium U.S. commercial assets at a time when South Florida continues to attract significant capital from domestic and international investors alike. The acquisition was facilitated by a JLL team led by market specialists Ika Ojala and Herman Rodriguez, who represented the seller.
Historic Property's Remarkable Transformation Drives Value
The Echo building's journey from a 1925 construction to a modern commercial hub exemplifies the value-add potential in South Florida's historic commercial properties. Morning Calm Management, a Boca Raton-based firm led by Mukang Cho, acquired the 0.8-acre property in 2021 for $14.2 million, recognizing its untapped potential.
Following their acquisition, Morning Calm executed a comprehensive renovation program that transformed the century-old structure into a contemporary mixed-use destination while preserving its historic character. The renovations introduced several premium amenities, including:
- A modernized lobby with enhanced aesthetic appeal
- A state-of-the-art conference center for tenant use
- A sophisticated tenant lounge for networking and relaxation
- A landscaped courtyard providing outdoor respite
- Forward-thinking EV charging stations addressing sustainability needs
The building's thoughtful layout includes 10,000 square feet of high-visibility ground-floor retail space, with the upper floors dedicated to premium office accommodations. This mixed-use approach maximizes revenue potential while creating a dynamic environment that serves multiple commercial purposes.
Wall Street South: The Transformation of West Palm Beach
The Echo building's 80% occupancy rate, featuring prominent financial services tenants including Stone Point Capital, AltaRock Partners, and Sound Point Capital, mirrors a broader trend in West Palm Beach's commercial real estate landscape. The city has undergone a remarkable transformation in recent years, earning the nickname "Wall Street South" among industry insiders due to the substantial influx of financial service firms relocating from traditional Northeastern hubs.
This migration has driven extraordinary growth in the local office market. According to recent JLL research, downtown West Palm Beach commands average asking rents of $105 per square foot—a striking premium compared to Palm Beach County's overall average of $63.50. This 65% differential highlights downtown West Palm Beach's emergence as a premier business district capable of attracting blue-chip financial tenants willing to pay premium rates for quality space.
The phenomenon represents a fundamental shift in how financial services firms approach their geographic footprint, with quality of life, favorable tax conditions, and modernized office environments increasingly influencing location decisions.
Development Pipeline Fuels Market Momentum
The area's development pipeline further reinforces investor confidence in West Palm Beach's commercial market. Billionaire Steve Ross's Related Ross has established itself as the dominant office landlord in downtown West Palm Beach through a strategic acquisition spree that began in 2021. The firm has:
- Acquired outright ownership of two significant office towers
- Secured half-ownership of another prominent building
- Completed the 20-story 360 Rosemary development
- Delivered the 25-story One Flagler project, which commands exceptional rents between $120-$140 per square foot
- Maintained an active pipeline of three additional office projects in various stages of development
Complementing these investments, Brand Atlantic Real Estate Partners and Wheelock Street Capital recently unveiled their Banyan & Olive mixed-use development. This project encompasses 300 Banyan, a six-story building contributing 120,000 square feet of new office inventory to the market.
Strategic Investment Timing in a Rising Market
Coco Group's acquisition of the Echo building demonstrates sophisticated market timing at a potential inflection point in West Palm Beach's commercial evolution. By acquiring a fully renovated historic asset at approximately one-third the cost of new construction (based on current replacement costs exceeding $1,500 per square foot for Class A office space in prime South Florida locations), the family office has secured a competitive position in a rapidly appreciating market.
The transaction's pricing—representing a more than three-fold increase from Morning Calm's 2021 purchase price of $14.2 million to the current $45.7 million valuation—illustrates the extraordinary value creation potential in South Florida's commercial sector when strategic renovations align with strong market fundamentals.
For Coco Group, the acquisition provides immediate cash flow from an 80% occupied building while maintaining upside potential through the lease-up of remaining vacancy at increasingly higher rates as the West Palm Beach market continues its upward trajectory.
Market Insights: Expert Perspectives on West Palm Beach Commercial Real Estate
What's driving financial firms to relocate to West Palm Beach?
The migration of financial firms to West Palm Beach is driven by Florida's favorable tax environment, enhanced quality of life for employees, modernized office infrastructure, and proximity to high-net-worth clients who have similarly relocated to the region. The COVID-19 pandemic accelerated this trend by demonstrating the viability of operating outside traditional financial centers.
How sustainable is the premium pricing in downtown West Palm Beach?
Market fundamentals suggest the premium pricing is sustainable due to constrained supply of Class A office space, continued corporate migration from higher-cost markets, and the area's emerging status as a financial hub. The significant development costs for new projects create a pricing floor that supports valuations of existing, well-positioned assets.
What return metrics are family offices targeting in South Florida commercial real estate?
Family offices like Coco Group typically target internal rates of return between 12-15% for commercial real estate investments in growing markets like West Palm Beach. The combination of existing cash flow, value-add potential through strategic leasing, and long-term appreciation supports these return projections.
How does West Palm Beach compare to other South Florida office markets?
West Palm Beach has emerged as the premium office submarket in South Florida, commanding higher per-square-foot rents than even Miami in select buildings. Its compact, walkable downtown, proximity to Palm Beach wealth, and quality of new development have created a unique value proposition that continues to attract institutional capital.
What role do historic buildings play in West Palm Beach's commercial landscape?
Renovated historic buildings like Echo offer distinct competitive advantages in attracting tenants seeking character, identity, and a sense of place. These properties typically feature higher ceiling heights, unique architectural elements, and superior construction quality compared to mid-century buildings, commanding rent premiums when thoughtfully updated with modern amenities.
By entering this dynamic market through the Echo acquisition, Coco Group positions itself at the intersection of history and innovation in one of America's fastest-growing commercial real estate markets.
